 "DLF")
Luxury homes are driving demand across India's residential market in metros. In Mumbai, residential properties, priced above Rs 10 crore in the primary and resale market rose 49 per cent in value terms to Rs 11,400 crore during the January-June period of 2023 against Rs 7,660 crore in the year-ago period, according to India Sotheby's International Realty and CRE Matrix report.
Similarly, between January 2023 and March 2023, Delhi NCR has witnessed an increase of 216 per cent in the sale of luxury houses compared to the first quarter of the calender year 2022.
According to the research by CBRE, "Sales in Delhi-NCR surged by over 216%, Mumbai by 44%, Hyderabad by roughly 800%, Kolkata by 100%, and Pune by nearly 13 times on a YoY basis for quarter ending Jan- Mar' 23.
For instance, as per a letter circulated by DLF to its residents stated that at Magnolia's on Golf Course Road a 6.400 sq foot apartment was recently sold for Rs 32.6 crore, while at Camellia's a 7,400 square foot apartment was sold for Rs 50 crore.
In The Crest, which is also on Golf Course Road, the resale of flats is around Rs 13 crore and the rentals are at Rs 2.5 lakh to Rs 3 lakh per month. In 2020-2021, the resale was at Rs 6.5 crore to Rs 8.5 crore.
In The Crest, which is also on Golf Course Road, the resale of flats is around Rs 13 crore and the rentals are at Rs 2.5 lakh to Rs 3 lakh per month. In 2020-2021, the resale was at Rs 6.5 crore to Rs 8.5 crore.
These sales have resulted in rentals also shooting up for super luxurt flats on Golf Course Road. While Magnolias rentals have seen a significant increase from Rs 5.5 lakh to Rs 6.5 lakh within just three months, the rentals at Aralias in the same period have increased from Rs 4 lakh to Rs 5 lakh for a 5,800 sq ft apartment.
The rental value of a 9.500 sq ft apartment at Camellias, has jumped to a whopping Rs 14-15 lakh a month from Rs 9.25 lakh just 18 months ago.
"Capital appreciation in Delhi NCR was observed at 40% on Y-o-Y basis at the end of 2022 when compared to 2021. The rentals are following the same trend and increasing in the same proportion owing to limited move in inventory but a decade high demand. In case of Gurugram the ready to move in inventory was only 1,433 units with a value of Rs 2,885 crore, while the under construction inventory is around 9,912 units which are valued at Rs 23,104 crore. This shows a significant crunch in ready to move in properties which are high in demand especially in the luxury segment. In case of Golf Course Road, since 2018 only DLF Crest and DLF Camellias have been completed while the inventory in these projects is limited," said Samir Jasuja, Founder & CEO, PropEquity.
In March, DLF sold out a luxury project on Golf Course Extension, leading to a Rs 8,000 crore worth of presales for the group. The Arbour project came out at Rs 18,000 per sq ft.
"The overall performance of the luxury residential market of Delhi-NCR has been witnessing an all-time high in recent times. The quest for spacious homes offering state-of-theart amenities has been at the core of this thriving market. Rising aspirations have been able to create an impact on sales which is anticipated to continue in forthcoming quarters," said Shveta Jain, Managing Director, Residential Services at Savills India, a property consulting firm.
Average rentals witnessed an increase of 28% YOY. - Golf Course Extension Road and Golf Course Road saw the highest rise in rentals with 33% and 31% YOY growth, respectively in the first half of 2023, shows data by Savills India.
Under-construction infrastructure projects that are nearing their completion like the Delhi-Mumbai Expressway, Delhi-Meerut Regional Rapid Transit System (Delhi-Meerut RRTS) and Dwarka Expressway etc. is expected to improve overall connectivity of the region with other parts of the country, which will further attract end-users and investors alike who are looking to invest in uber luxury residential properties.
The Haryana Government increased the circle rates for a few sectors and commercial areas in the Gurugram district. The sectors falling on the Golf Course Road, SPR & Dwarka Expressway have seen circle rates increased up to 30%, whereas the circle rates of commercial areas have been increased by about 10%.
"New Gurugram and Dwarka Expressway, with a YOY increase of 40% and 29% respectively, are the two micromarkets to have witnessed the highest rise in capital values of under-construction properties during H1 2023. This can be mainly attributed to the new price benchmarks set by the launch of premium projects by reputed developers and higher demand for new properties offering ultra-luxe facilities," said " said a report by Savills India.
Last week, Godrej Properties emerged as the highest bidder to develop two group housing plots in the Golf Course Road micro-market through an e-auction conducted by the Haryana Shehri Vikas Pradhikaran (HSVP).
“Our foray into the prime Golf Course Road with two luxury residential projects marks a significant milestone for Godrej Properties. It aligns well with our expansion strategy and will further solidify our position as a leading real estate developer in NCR," said Gaurav Pandey, MD and CEO of Godrej Properties.
In Mumbai, the demand for for luxury apartments in the financial capital was mainly driven by industrialists, Bollywood celebrities and high-salaried employees, according to Sotheby's International Realty.
As per the data, sales of luxury housing in the primary (fresh launch) market surged 83 per cent to Rs 8,817 crore during January-June period, as compared to Rs 4,816 crore in the same period of the previous year. However, the sales in the secondary (re-sale) market were down 9 per cent to Rs 2,583 crore from Rs 2,844 crore during the period under review.
"Indians are getting richer and they are not shying away from flaunting their wealth. The Richie Rich is now eyeing larger homes than ever before with a clear preference for ocean views, higher floors and amenities galore," said Abhishek Kiran Gupta, CEO and Founder of CRE Matrix.
According to the report, the top luxury micro-markets in Mumbai are Worli, Malabar Hill, Mumbai Central, Lower Parel, Prabhadevi, Bandra West, Tardeo, Mahalakshmi, Andheri West, and Santacruz West.
Another key finding is that 'Ultra-Luxury (Rs 40-70 crore)' segment witnessed a 64 per cent growth with 64 units sold (primary) in only last 18 months (H1 CY’22 to H1 CY’23) in Mumbai vs 39 units in the preceding 18-month period of H2 CY’20 to H2 CY’21).
Some of the noteworthy transactions witnessed were:
Radhakrishnan Damani Family - Oberoi Three Sixty West, Worli - Rs 1,238 crore.
JP Taparia Family - Lodha Malabar, Malabar Hill - Rs 310 crore
Jay Mahtani - Morena House, Carmichael Road - Rs 83.4 crore
Alia Bhat - Aerial View CHSL, Bandra (W) - Rs 37.8 crore
Sandeep Khosla - Rustomjee Elements, Andheri (W) - Rs 25.7 Cr
"Driven by the need for bigger and better living spaces and the shift in the way luxury homes are sold from just a few locations to newer micro-markets, certain regional pockets in western suburbs and the Harbour belt are likely to be key contributors in the decade's best H1 revenue through home registration," said Cyrus Mody, Managing Partner, Viceroy Properties.
